12-1,101.   Tax upon gross earnings derived from money, notes and otherevidence of debt; imposition by counties, cities and townships, procedure;rate of tax; petition for elimination of tax; petition to impose tax.(a) In the year 1982 or in any year thereafter, the board of county commissionersof any county is hereby authorized to adopt a resolution imposing a taxfor the benefit of such county upon the gross earnings derived frommoney, notes and other evidence of debt having a tax situs in such county.The rate of tax shall be in the amount of 1/8 of 1% of the total gross earnings,or any multiple thereof not exceeding an amount equal to 3/4 of 1% of thetotal gross earnings derived from such money, notes and other evidence ofdebt during the taxable year of the taxpayer ending during the last precedingcalendar year.

      (b)   In the year 1982 or in any year thereafter, the governing body ofany city is hereby authorized to pass an ordinance imposing a tax for thebenefit of such city upon the gross earnings derived frommoney, notes and other evidence of debt having a tax situs in such city.The rate of tax shall be in the amount of 1/8 of 1% of the total gross earnings,or any multiple thereof not exceeding an amount equal to 2 1/4% of thetotal gross earnings derived from such money, notes and other evidence ofdebt during the taxable year of the taxpayer ending during the last precedingcalendar year.

      (c)   In the year 1982 or in any year thereafter, the township board ofany township is hereby authorized to adopt a resolution imposing a tax forthe benefit of such township upon the gross earnings derived frommoney, notes and other evidence of debt having a tax situs in such townshipand outside the corporate limits of any city of the third class. Therate of tax shall be in the amount of 1/8 of 1% of the total gross earnings,or any multiple thereof not exceeding an amount equal to 2 1/4% of thetotal gross earnings derived from such money, notes and other evidence ofdebt during the taxable year of the taxpayer ending during the last precedingcalendar year.

      (d)   For the purpose of authorizing taxes commencingin the year 1983 and thereafter the county, city or township shall adopta resolution or pass an ordinance on or before September 1 of the year precedingthe year in which the levy of such taxes will commence. A certified copyof any resolution or ordinance adopted or passed imposing, reimposing oreliminating a tax pursuant to this section shall be submitted to the countyclerk of the county or counties in which the taxing subdivision is located.On or before July 15, 1983, and July 15 of each year thereafter, the clerkof each county shall transmit to the director of taxation of the state departmentof revenue a list showing the tax rate, if any, imposed on money, notesand other evidence of debt for the following year by the county and everycity or township situated within such county.

      (e)   On or after January 1, 1983, upon submission of a petition whichis in conformance with the provisions of article 36 of chapter 25 of theKansas Statutes Annotated, and amendments thereto, and is signed by notless than 5% ofthe qualified electors of a county, city or township levying a tax underthe provisions of this act requesting the same, the governing body of suchtaxing subdivision shall be required to submit to theelectors of such taxing subdivision at the next state generalelection or general election held for the election of officers ofsuch taxing subdivision a proposition which shall be placed on the ballot insubstantially the following form: "Shall __________ (county) (city) (township)eliminate thetax on gross earnings derived from money, notes and other evidence of debtand be authorized to impose and levyproperty taxes, in addition to anyaggregate levy amount limitation on the taxing subdivision's ad valorem tax levyauthority, as may be necessary to offset the revenue lost fromelimination of the tax on gross earnings derived from money, notes and otherevidence of debt?" Anysuch election shall be noticed, called and conducted in the manner prescribedin the generalbond law. Any election whichwas otherwise conducted in accordance with the provisions of thissubsection but which was held on April 5, 1983, on any proposition which issubmitted to the electors of a township by the governing body of suchtownship pursuant to a petition submitted under this subsection is herebydeclared valid.If a majority of the electors voting thereon at such electionshall vote in favor of such proposition, the board of countycommissioners or the township board shall provide by resolution or the governingbody of any city shall provide by ordinance that no tax shall be leviedupon gross earnings derived from money, notes and other evidence of debtas follows: When suchelection is held prior to August in any year, the resolution or ordinance shallprovide that no such tax shall be levied thereon in the calendar yearfollowing the year of such election and in each year thereafter, andwhen such election is held in August or thereafter of any year, theresolution or ordinance shall provide that no such tax shall be levied thereon in thesecond calendar year following the year of such election or in anyyear thereafter. The governing body of the taxing subdivision shall thereupon beauthorized to offset the loss in revenue from the elimination of suchtax by the imposition and levying of any other taxes as may beauthorized by law or by increasing its ad valorem tax levy for thegeneral fund or, in the case of townships, for the general fund or anyother fund for any year in which revenue is not received from the taxon gross earnings derived from money, notes and other evidence of debt inan amount not to exceedthe amount of such tax received in the year prior to elimination of suchtax. With respect to townships, the increase in the amount of such advalorem tax authorized hereinshall be in addition to any aggregate levy amount which may be fixed byany existing state law or any law which may hereafter be enacted. Withrespect to cities and counties, any such levy shall be exempt from the limitationimposed under the provisions of K.S.A. 79-5001 to 79-5016, inclusive. Notwithstandingthe provisions of this subsection to the contrary, the governing body ofa county, city or township may either reimpose or submit to the electorsof such subdivision a proposition to reimpose a tax on gross earnings derivedfrom money, notes and other evidence of debt in the manner and at the rateprescribed by this section.

      (f)   On or after January 1, 1983, upon submission of a petition whichis in conformance with the provisions of article 36 of chapter 25 of theKansas Statutes Annotated, and amendments thereto, and is signed by notless than 5% of the qualified electors of a county, city or townshipnot levying a tax under the provisions of this act requesting the same,the governing body of such taxing subdivision shall be required to submitto the electors of such taxing subdivision at the nextstate general election or general election held for the electionof officers of such taxing subdivision a proposition to impose a tax pursuantto this act in an amount not exceeding the limitations prescribed in thissection. Such proposition shall be in substantially the following form:"Shall_______________(county) (city) (township) impose a tax on gross earningsderived from money, notes and other evidence of debt at a rate of _______pursuant to K.S.A. 12-1,101, et seq. to reduceproperty taxes?" Any such election shall be noticed, called and conductedin the manner prescribed by the general bond law.Any election whichwas otherwise conducted in accordance with the provisions of thissubsection but which was held on April 5, 1983, on any proposition which issubmitted to the electors of a township by the governing body of suchtownship pursuant to a petition submitted under this subsection is herebydeclared valid.If a majority of the electors voting thereon at such election vote in favorof the proposition the board of county commissioners or the township boardshall provide by resolution or the governing body of any city shall provideby ordinance for the impositionof such taxes in themanner prescribed by this act. Such taxes shall be effective for all taxableyears commencing after December 31 of the year in which such propositionis approved by the electors of the taxing subdivision.

      (g)   For purposes of submitting a petition or voting at an election heldpursuant to the provisions of this section, electors of a township shallnot include any person residing within the corporate limits of a city ofthe third class.

      History:   L. 1982, ch. 63, § 1; L. 1983, ch. 61, § 1;L. 1985, ch. 334, § 1; July 1.